Shortly after the strike, the "color red" alert for incoming rockets from Gaza sounded in Israeli communities in the southern Hof Ashkelon region.

Missile fragments from IAF strike in Gaza (AFP)

The IAF attack on Gaza came even as warring Palestinian factions Hamas and Fatah, the respective de facto rulers of the Gaza Strip and West Bank, announced an all-encompassing reconcilation deal that aims to end almost seven years of tensions.

The IAF strike in the northern Gaza town of Beit Lahia had targeted a suspected terrorist wanted by Israel's Shin Bet internal security service, a common practice by the Israeli military. Ynet has learned that the Shin Bet received intelligence of a plan by a terror cell or lone terrorist to launch a rocket at Israel. The air strike took place moments before the rocket was due to launch.

The Israel Defense Forces had no immediate comment.

There was no immediate word on the identities of those wounded in the air strike,

Earlier this week, Gaza militants attempted two attacks on IDF soldiers followed by a rocket barrage on southern Israel.

Yoav Zitun, Reuters and the Associated Press also contributed to this report